UK Business Investment Freefall Continues

In the second quarter, UK business investment, which is measured in chain volumes by the Office of National Statistics is estimated to have fallen 10.4% on a quarterly basis, and fallen by 18.4% on an annual basis. These figures are seasonally adjusted.

According to the ONS data business investment has been falling continuously since the first quarter of last year, with neither a blip or a spurt in that entire time.

Despite the government's best efforts to increase liquidity it seems that the banks are just unable to provide the finances that British business needs to be able to make even the slightest turnaround in terms of investment towards expanding the UK economy out of recession.

The services sector has been worst affected. At its 2007 peak investment in the services sector stood at £27million. In the second quarter of this year services sector businesses invested just £21million.